Brazil has emerged as one of the most significant markets for the gambling industry. As the country’s government considers implementing restrictions on payments, other teething troubles over new regulations also exist.
In the first of a two-part special, CasinoBeats spoke to Alvaro Camargo, Country Manager Brazil at Xtremepush, Thiago Calmon, Online Sales Manager at R. Franco Digital, Tatiana García Barrenechea, Commercial Director for LatAm at Light & Wonder, Thomas Smallwood, Chief Commercial Officer at ESA Gaming, Izabela Słodkowska-Popiel, Head of Account Management for North America and Latin America at Wazdan, and Helena do Couto, Regional Legal Officer LatAm at Eeze, about the current standing within the country, as well as how critical it is for the continent as a whole that Brazil becomes a raging success.
CasinoBeats: How optimistic are you about the current state of play in the regulated gambling industry in Brazil?
Alvaro Camargo: We are very excited, because we have seen the regulators have understood what is at stake. Many companies were concerned about whether the regulations being put in place would be attractive, but there has been a significant movement in terms of applications for Brazilian licenses.
There are also many foreign suppliers and operators looking to make a big play in the market, bringing with them major investment and top-level industry expertise. All of this contributes to the raising of the quality within the market, in terms of services, the professional teams involved and ultimately, the customer experience.
Thiago Calmon: I hold an optimistic view on the Brazilian market’s future. There is significant potential for growth, driven by rising interest from both local and international operators. With the regulatory framework launching early next year, a foundation is beginning to form, which is a positive step towards market maturation.
However, it is important to acknowledge that specific challenges must be addressed to facilitate the market’s full development. These hurdles will need strategic navigation to unlock the full advantages of this burgeoning landscape.
Tatiana García: The region’s biggest country embracing regulation is a highly significant event not only in LatAm, but across the entire world of online gaming. The number of licence applications that have been submitted ahead of the market’s launch at the start of next year shows that there is a strong appetite to become actively involved in what is an exciting opportunity.
I expect a wide range of industry stakeholders will want to be heavily involved very early on, including Light & Wonder, supplying the market with the content and services that will help to create a highly entertaining, safe gaming environment.
Thomas Smallwood: I’m cautiously optimistic about Brazil’s regulated gambling market. It’s a promising yet complex space with strong potential. We’ve seen significant growth in recent years, although this has slowed somewhat as regulation approaches. However, in general, it bodes well for content providers as it signals a maturing market.
If the regulatory rollout is smooth and taxation does not stifle the industry, we could see sustained growth and continue attracting international operators and developers keen to tap into this lucrative market.
That said, challenges do remain, such as multiple layers of taxation and uncertainty around how various costs will be shared between operators and suppliers, not to mention the current time constraints around regulation by January 1 this may be delayed in the near future.
Izabela Słodkowska: The outlook for Brazil’s regulated gambling industry is highly optimistic. Recent regulations for online betting and casino games are expected to drive significant growth, potentially reaching a $3b market by 2027.
Although the regulatory landscape poses operational challenges, Brazil’s framework is aligned with the growing trend of responsible gambling in Latin America, making it a promising opportunity for operators looking to invest.
Helena do Couto: I would say I’m a realistic optimist. Regulation has been necessary for years, and today, we have it in a comprehensive format. However, it is new, and the administrative authority responsible is also new.
While it is certainly composed of competent people, it is still in its first year of operation. We also have some conflicts between state and federal jurisdictions as operators and the entire chain involved are adapting to the rules and conducting tests.
In other words, we have the theory – the legislation and ordinances – ready. Now, we’re creating practical experience from this theory, adapting operations that previously followed other regulations, such as those from Curaçao. So, the current state is one of intensive learning, but I am certain that this somewhat turbulent adaptation period we’re experiencing has its days numbered.
CB: How vital is it for the continued growth of regulation in Latin American markets for Brazil to be a success story?
TC: Brazil’s success is of paramount importance within the context of Latin America’s regulatory landscape. As the largest market in the region, Brazil has the potential to set a benchmark for other countries to follow. If Brazil can develop an effective regulatory framework, it could pave the way for similar strategies across Latin America.
This would not only drive growth and attract investment, but also contribute to creating a more cohesive and unified regional market. Thus, in my opinion, Brazil’s regulatory journey is essential for fostering a stable and favourable business environment that benefits the entire region.
TG: Brazil is undoubtedly a very important country and its impact after launch will inevitably have a ripple effect across other countries considering putting regulations in place. The balance of a thriving, competitive market with all-important protections for players is one that we believe can act as a model for others to follow.
At the same time, what operators need to offer players to thrive does not necessarily translate easily across the region. Brazil has not had legal land-based casinos in place in most people’s lifetimes, meaning it is slightly different to many other existing regulated markets across LatAm from a player and content perspective.
We have seen that Argentina, with its land-based casino heritage, has become a success in several regulated regions despite challenging economic circumstances. It is a similar story in Mexico, where that casino heritage has helped our popular, recognisable omnichannel franchises to perform well.
TS: Brazil is in a prime position to become Latin America’s gambling hub, offering ample opportunities for both domestic and international stakeholders. As the largest economy in the region, with a population exceeding 200 million and a deep-rooted sports culture, Brazil could set a strong precedent for other markets in the region.
Success will depend on a model that balances operator and supplier profitability with robust player protections, making regulated markets more attractive across LatAm. If tax burdens, for instance on player winnings and gaming companies, are carefully managed, the country could become an exemplary case for sustainable growth.
IS: Brazil’s success in establishing a regulated gambling market is critical for the broader regulatory progress in Latin America. It sets a vital precedent for market stability, revenue generation, and responsible gaming practices across the region.
As one of the largest potential markets, Brazil’s effective regulatory framework could encourage neighbouring countries to adopt similar measures, enhancing Latin America’s appeal to international operators and investors.
HdC: Brazil plays a central role in Latin America, and this influence extends beyond the igaming industry. Brazil borders nearly every country in South America, spans continental dimensions, and is the largest economy in LatAm. It acts as the main driver of investment, innovation, and serves as a strategic hub for market expansion and regulatory developments in emerging areas.
Brazil’s success – which is already underway – will inspire other countries on the continent who have not yet regulated the sector to do so and will draw the attention of both local and global investors to a region with clear potential for investment and growth.
AC: While we already have regulated markets across LatAm, the relevance of Brazil in the region cannot be overstated. Once a market of this size goes through the process of creating and rolling out a regulatory model, implementing its policies successfully, it speaks to what is possible for neighbouring countries.
Thanks to strong policies and a layer of built-in protection for the supplier, operator, service provider and customer, Brazil presents a positive outcome that can certainly be emulated elsewhere.
